Devaluation of the Jamaican dollars has resumed, the PNP is back !!

What we all feared with the return of the PNP to power has started to manifest itself. The J$, which has been losing value with respect to the  US$ has closed at the lowest value it has traded in at least two years. Today it takes an average of  J$88 to purchase  US$1.00 and has truly signaled the return of the PNP to power.

Under past PNP administration, the government had embarked on a devaluation policy, which  only served to increase the cost of goods and service to Jamaicans and made the life of Jamaicans so much harder.

Given this recent devaluation , which is expected to continue and the recent imposition of GCT on a number of previously exempted items along with  the increase in the GCT on electricity, it will no doubt result in significantly levels of upwards prices adjustments for  Jamaican consumer in particular the poor. It appears as if  everything ” tun up for real”.

The former PNP administration sought to use a high interest rate policy to defend the value of the Jamaican dollar, which moved our interest rate to dizzy heights. Can we say this is Deja Vue?  Are we returning to where the PNP left off in 2007, when they were booted from office.

No doubt this will all lead to higher levels of inflation, which will lead to higher prices , which leads to higher wage  demand, which leads to more inflation and the deadly cycle repeats itself.

I am now more than ever convinced that the PNP government does not know how  to function in an market driven economy and their constant bungling has only served to make Jamaica the biggest pan handler in the entire Caribbean.

Can we truly say, this is what we voted for, is this really better than what existed before?

Rates

Historical exchange rates 1971 – May 2012.

Exchange rate 2007 to May 2012.

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St Kitts to manufacture solar panels !

Why is it that other Caribbean countries are able think ahead and we get caught up taxing everything we can,   borrow all we can and continue to focus on politics above country.

Here,  St Kitts is working with their Taiwanese partners to not only add manufacturing jobs and these jobs will serve to reduce St Kitts overall electricity cost to its customers, reduce its oil bill and keep that country on path to be the Caribbean first green country.

This is what governments are supposed to do.

http://www.sknvibes.com/news/newsdetails.cfm/58569

Complant tax break, is it fair?

We note with amazement the 20 yr tax break given to Complant by the former JLP administration in relation to the divestment of the sugar factories. Apart from the jobs that were saved, how does the country benefit from what is considered to be a rather very generous break on corporate tax, transfer tax, stamp duties, gct and custom duties.

The hotel sector, which has significantly higher levels of investments gets 10 yr , renewable at the end of this ten yr period, once the hotel owners decide to do significant levels of refurbishing  before expiration of this first ten years.

Audley Shaw and the then JLP erred in giving Complant this 20 yr tax break, they should have received no more than 10yrs. It beats me why our politicians continue to sell the country’s assets, without ensuring that the country gets value for money . I have no problem in selling non performing assets, but we must make sure that we move to get the best deal possible for Jamaica and Jamaicans, is that too much to ask.

I guess it is, because we continue to do the same thing over and over again.

Britain refuses to support China Harbour unsolicited proposal in Cayman.

Since we are no longer subjected to British rule, we really don’t have to follow their guidelines do we.  Here is the latest release from the OCG Jamaica on this development in the Cayman Islands.

media-notification-1

NO IMF DEAL BEFORE NOVEMBER

The PNP during the election campaign gave the commitment that a new and better IMF deal would have been completed in mere weeks after they were elected.

Its now almost 6 months after the elections and as far as I know, we are no closer to a deal than we were 6months ago. The then opposition leader said we would be kept abreast of the negotiations, unlike what the JLP did, which was to keep us in the dark.

The new administration lied and has pretty much don exactly what the JLP did in the last two years of the now defunct IMF deal. They have failed to negotiate a new deal and they have failed to explain to us, why that has been the case.

From the information that I have come across, it appears that the very issues that affected the JLP during the final phase of the IMF deal are now the very same issues preventing us from securing a new deal.

Now we are being told by Dr Phillips that we may not get a new deal until the NOVEMBER !!

This is unbelievable and has served only to widen the trust deficit between this new PNP administration and the people. The mendacity of the PNP in government is showing and Jamaicans will be left once again to pick up the pieces as the country continues to lose credibility.

Which international lending agency would lend money to a set of persons, who hounded and damaged the country’s reputation international in order to gain political power.

Which international lending agency would be lining up to lend money to a set of persons who blatantly lied to the populace in order to get state power, knowing fully well that most of what they promised could not have been fulfilled.

Look out for a return to high interest rates as these lending agencies cannot trust the government due to a lack of credibility and as such will hike interest rate, when it finally decides to lend us money provided we can secure an IMF deal.

I would also like to know if it is true that given that no deal is sight just now , the government will be forced to go into the local market for loan, which will serve to push up interest rate once again.

Can someone please tell me that this in not true.

http://jamaica-gleaner.com/gleaner/20120530/business/business1.html

2012-2013 Revenue Measures as proposed by the Finance Minister

Here is the full  document as presented by the Finance Minister  last week.

2012-2013- Revenue Measures

Is the PNP about to wreck the Jamaican economy ( again)?

The PNP unleashed the largest tax package in the history of Jamaica and seems set to choke the life out of the economy as well as that of the poor, which it has always said it will  protect.

Grace Kennedy today reported that poor Jamaicans will no longer be able to buy ” bully beef” ( canned beef) and chicken price is set to go up by virtue of the 66.5% increase on GCT on electricity.  Rain forest has also announced that all fresh food, vegetables and fish are set to go up due to the GCT being applied to these items and well as the increase in GCT on electricity , which his company cannot absorb.

Yam, Dasheen, plantain, banana etc , will all now attract GCT, but only if you buy these in the supermarket. If the ground provisions and fresh food and purchased in the market, then there will be no GCT being applied to these items, due to the fact that these vendors are not registered to collect GCT.

Jamaica’s star performer , the tourism sector is about to become  less competitive  when compared to many other destinations in the region by virtue of this new room tax, which was levied on the only sector in the country that is growing and contributing in real terms to the Jamaican economy. The PNP has sought once again to transfer wealth from the poor to the rich, much like PJ Patterson did, by virtue of the 25% reduction in corporate taxes.

The PNP has really been true to form when they said during the election  that they were going to ” tun up d ting”. I really don’t believe that Jamaicans expected that the ” ting wud tun up so much, till e almost buck”.

Courtesy of the Jamaica Gleaner.

Where is he running to, come like im neva hear what KD Knight said, ” There is no place to run, given that they just gave the JLP the boot, twice”.

 

Ok Mama P will rescue you come next week Tuesday, where its expected, that she will announce a few roll back in some tax measures.

Kelcy-Ann Wynter cries on the shoulder of Prime Minister Portia Simpson Miller, her member of parliament, just over one week ago. - File

Don’t cry about the new tax package my dear, Mama P loves you and I will have some goodies for you next week Tuesday.

 

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